Unemployment and economic inactivity rates higher in the North East than UK average
Date published:
Josh Maratty, policy advisor at the North East Chamber of Commerce, said:
In today’s ONS labour market survey, the North East continues to trail the national picture, with both unemployment and economic inactivity rates remaining above the UK average.
Between April and June 2025, the employment rate for those aged 16 to 64 in the North East stood at 68.2 per cent, the lowest of all UK regions and 7.1 per cent below the national average of 75.3 per cent. The region also recorded the highest economic inactivity rate at 28.2 per cent, which is 7.2 per cent higher than the UK average, though this represents a marginal decrease of 0.1 per cent on the previous month. Unemployment among those aged 16 and over was 4.8 per cent, slightly above the UK average of 4.7 per cent.
Alongside these figures, the government has recently unveiled its Small Business Plan, setting out a long-term vision to support the growth and productivity of smaller firms. This includes measures to improve access to finance and simplify support services, which are long-standing concerns regularly raised by our members. The plan is accompanied by a consultation on tackling poor payment practices, open until 23 October 2025. The Chamber will be submitting a collective response on behalf of North East businesses and welcomes input from members wishing to share their views or experiences.
We also welcome today’s announcement that Skills England will examine future employment demand across ten key sectors and map the education pathways needed for priority occupations. This work is vital to aligning skills provision with business needs.
Last week, the Chamber was pleased to host the Low Pay Commission at our Stamp Exchange office in Newcastle, with discussions focusing on the impact of recent changes to the UK minimum and living wage rates. Hosting such an influential body reflects our commitment to ensuring the voice of North East businesses is heard both regionally and at the highest levels of national policy.
Looking ahead, next month we will launch our new policy plan, Unlocking the North East’s Potential. This sets out our strategic vision and priorities for driving sustainable growth and long-term business success across the region.
We remain committed to championing the North East business community because We ARE North East Business.